Converting AVI to MP4

[Shamrock]

I have Videora converter for the iPod Touch, however, every time it converts the video, it increases the size of it. Lets say I have a 700 MB file, it explodes to around 1.5-1.8 GBs. I checked the settings, and it was on MPEG4. I accidentally had it on H.264 and that size was even larger! The confusing thing is Videora estimates it to come out smaller than the actual file its converting on default settings which are:
Video Format - New
Video Size - iPod
Video Quality - Medium
Enhance Quality - Off
Audio Quality - High

I don't know what program to use, or if I am using the wrong program settings as in the wrong format to change it to such as MPEG4, H.264, etc. I want the video to look like I'm watching it on the computer just without noticeable depreciation in quality.

Any help will be great! I like the simple layout of Videora, but I am up to trying any program. I just want the file size to either be in the ballpark of its original size. I don't want it to be double the size at half the quality. That is just nonsense!
D:

 

[Qonfused]

I use Videora, too. I use the highest quality MPEG 4 setting and it only bumps it up 100MB or so, sometimes less.

 

[Asus]

Usually the file size will not be near what it was before when switching formats and trying to maintain the quality. It's because some formats are better at compression than others. How far off it is will depend on what source you are messing with. Your AVI must be really compressed already. Maybe lowering the audio quality could help size and not change too much how it sounds via your ipod.

 

[Viperidae]

MP4 ftl. I've had so many ****ing problems with that ****ing format.

 

[VirusType2]

I don't like the video MPEG formats either, but anyway, I'd recommend DVDfab Platinum. It is perfect for what you describe I think, since it has an iPod feature.

it comes with a fully featured 30 day trial.

to get the software:
http://www.google.com/search?hl=en&q=dvdfab+platinum&btnG=Google+Search


Screenshot of the GUI. If you look on the left pane, you can see, "iPod"
http://cybernetnews.com/wp-content/uploads/2007/12/dvdfab-platinum.jpg

It's great software, I've been using it for a couple of months. Someone here - possibly Asus - recommended it to me a long time ago, but I never bothered to try it until a couple of months ago.